The trend continues, as everyday more firms seem to be willing to give crypto technologies a chance with the digital coins being the center of future interest. We identified the most profound updates from worldwide known companies that have shown interest in cryptos. Keeping in mind that the bigger the firm is, the greater the statement they make that confirms that crypto currencies are here to stay.
According to Bloomberg, Goldman Sachs is considering a proposal to offer custody for crypto funds. In more detail, Goldman, would hold the innovative coins on behalf of the funds, with the aim to eliminate client’s worries of losing their funds due to cyber-attacks.
A bank with the caliber of Goldman Sachs is not experimenting with new assets or looking for ways to boost their reputation as they already have both, instead is responding to client interests on digital products. Goldman, has not given a specific date of enacting its crypto services nor confirmed it will actually proceed, but the interest remains the vital point as it creates the circumstances for future developments. Also, in the beginning of 2018 Goldman hired Justin Schmidt to be head of its crypto Department which also confirms they could at some point offer crypto services.
Here, we would also like to add, that in previous months a very similar approach was followed by other huge banks like Bank of New York, Mellon Corp, JP Morgan Chase & Co. and Northern Trust Corp confirming they are in process of developing services for clients using virtual coins.
A new advancement for Ethereum coin owners has taken place and seems to make life easier for users of the specific coin. In order for users to make a transaction from wallet to wallet exchanging Ethereum, would initially have to add their 40 character hash identifier which was prone to error due to its size. Now, Minds + Machines Group Limited a firm associated with building Internet Top-Level Domains has made an agreement to create services for Ethereum coin owners specifically. This will allow Ethereum transactions to take place by using only the blockchain enabled word that is linked to their wallet, thus speeding up transactions and promoting transparency. We assume this development could be used by other Crypto currencies also.
On other news, various sources are indicating the SEC is undergoing a tight investigation in brokerages that offer crypto currency trading, in an attempt to understand processes and operations in depth. SEC is investigating information regarding fees generated from trading, financing and initial coin offerings. It could also be a way to learn more on how the public has used crypto trading but also how the brokerage has served its clients during the past years were the specific assets have gained a lot of recognition and attention.
A very important point, is that money managers have described their involvement to regulators and have requested further guidance to ensure they’re complying with the law. Even though our first understanding is that these managers are not aware of how to deal with operations in these markets, in our opinion this fact could be very positive for the future. A legal framework and specific instructions will need to be set which could shield against misuse and exploitation of investments. Money managers have been prosecuted for being careless with other people’s money however, the road is slowly set to control and monitor such abusive activities in order to eliminate them completely.
Bitcoin against the US Dollar opened with a negative gap on the Monday session weakening even further. It is now moving between our $7,120 resistance level and the $6,643 support level.
If the crypto currencies is undertaken by a bullish sentiment we could see it break the $7,120 resistance level and aim higher for the $7,530 resistance barrier. On the other hand , should the digital currency drop even lower it could break the $6,643 support level aiming lower for the $6,294 support hurdle.
Bitcoin’s drop consists of a natural correction because it may display a more accurate valuation of the digital currency. Overall we see the case for a maturing process to be underway for the crypto instrument towards price stabilization.